Insight • August 27 ,2024

The Role of Cargo Data in Fleet Performance

TOPIC • Carrier & Vessel Solutions (CVS)

1. What is Emission Compliance?

As of today, reducing emissions to be compliant with emission regulations is on top of every ship owner’s and ship operator’s agenda. Another feature was added to this picture lately in the form of the financial impact on both businesses through the new emission trading requirements.

Discussions about charter contracts between operator and owner now also include the share of emissions produced by specific cargo carried on board.

But so far, when it comes to the cargo, a full view of all factors impacting the vessel’s performance was missing.

A loading computer enabled container ship under a sunset sky.

Cargo monitoring and performance monitoring systems are mostly fully decoupled and must be manually brought together from siloed data sources by nautical and technical inspection departments inside a shipping company.

Inside the company, as well as outside, there is only very limited data exchange with other sustainability stakeholders so far.

The environmental concerns of a fleet are now regarded as a shared responsibility. A vessel’s emissions and its fuel consumption are driven by many factors. It is typically a combination of operating and maintaining the vessel in combination with how cargo is being put on board. Today, there is a lot of discussion between the operator and the owner about meeting these regulations – especially considering the recent tightening of regulations and the rising global effort to meet sustainability standards.


2. Emission Compliance: From Monitoring Emissions to Concrete Financial Impact

The vessel is a complex system, and fuel consumption cannot always be narrowed down to a single source. A combination of factors causes consumption exposure, which is why it’s important to have an overview of all sources. So, how can cargo data help reduce emissions?

It is imperative that operators reduce emissions to remain compliant and meet CO2 targets, all the more so as these targets are getting stricter over time.

Below are a few relevant impacting factors to consider.

  • Shared responsibility between numerous business partners.
  • Being compliant with evolving emission regulations over time.
  • New financial impact through emission trading requirements.
  • Missing full view of all factors impacting the vessel’s performance.
  • Limited data exchange between sustainability stakeholders.

By implementing software that helps navigate these key challenges, asset managers can steadily but surely begin to reduce a vessel’s emission exposure over time.


3. What is the Financial Impact Driven by Emissions?

In 2024, the European Union introduced the ETS (Emission Trading System) to fight climate change, a measure that was already in place for several other industries, and now extends to the maritime industry. Cargo ships of a certain size can violate EU ETS allowances, and ship owners need to make sure the emissions generated by their vessels are falling under the EUAs or (European Emission Allowances), which grow stricter by the year. If a vessel contributes more than the amount permitted by the EUAs, then it is considered overconsumption. The party responsible must then pay for the additional emissions, which requires collaboration from charterers, owners and managers.

The protocols on how this shared responsibility should be managed are still being developed. In today’s unpredictable landscape, these regulations are unlikely to remain static—and companies will need to follow it very closely. Shipping Companies are rewired to reduce emissions through measures such as operational efficiencies, investments in low-carbon technologies and adoption of alternative fuels.

With these new regulations, cargo data will increasingly impact the results of emission compliance efforts by the various business partners.

The influence of cargo data on the emission compliance efforts as of now shows:

  • Cargo weight to be reported under EU MRV.
  • Number of reefer cargo impacting CII.
  • Verifiers asking for evidence of transported cargo data (BDN and edi).
  • Loading Computer as the single source of truth (often integrated with reefer monitoring systems).

Asked about the most important industry trends of the next 5 years, a Newbuilding Director of a large NOO answered:

“Environmental regulations may start to consider the amount of cargo carried when looking at emissions. If that happens, we will need to maximize and monitor vessel cargo utilization.” 

There is a reduction factor to be applied which basically takes out the emissions which are being generated for the transport of the cargo rather than for the vessel because it is considered unfair that a vessel needs more emission certificates just because it is transporting a big number of reefers. In this case the reduction factor is applied to the cargo, and not to the vessel.


4. The Integrated Navis Solution

Navis helps operators and owners to access relevant information and bring cargo data into the picture. Bluetracker and MACS3 Connected are already submitting information from on board the vessel to the shore and are critical in helping owners and managers achieve improved visibility and control. The Connected Loading computer can share certain cargo information across different stakeholders prior to arrival of the vessel so everyone has the information available at their fingertips.

MACS3 Connected, the Connected Loading Computer, contributes to this solution by

·     Reliable data from the real-time visualization of the actual onboard situation

·     Saving time with easy collaboration between onboard and onshore teams

·     Allowing for precise decision and action by data distribution across multiple stakeholders

·     Providing a single source of truth in case of incidents, emergencies or claims

·     Using cargo-related data from a single source of truth to meet reduction factors in emission calculation

A glowing shipping port at night.

5. Bluetracker, the Fleet Performance system contributes to this solution by:

CII Monitor

  • Dashboard – displays the rating of your fleet concerning CII data.
  • Ship Details – for each vessel, a detailed view of the daily CII and year-to-date CII is available.
  • Reduction factors – for each vessel, you can apply reduction factors (e.g., reefer reduction, pumps reduction).
  • History & Prediction – the rating for the coming years is displayed for each ship, based on the data for the current year.
  • CII Prediction and Simulation
  • Simulation – you can create time segments, and for each segment, you can create multiple scenarios.
  • Reference Calculator – you can search for reference data based on historical data from the vessel.
  • Integrated Solution – for each vessel, you can apply not only reduction factors but also performance improvements, e.g. based on hull performance.
  • Helper Tools – easy estimation of required values based on commonly known data.

CII Advisory Wizard

  • Target Rating – you can choose a target rating that you want to achieve within a certain time period.
  • Three Options – you select whether you’re aiming for the best rating, maintain highest possible speed or maximize the vessels efficiency.
  • Automated Scenarios – based on the selection the wizard will create default scenarios for your simulation that will lead to the chosen target.

 

6. EU ETS – How should data management be done?

Flexibility and control for your data upload to verifiers from Bluetracker as your Fleet Performance system

  • Choose how to collect your data
  • Instant plausibility and completeness checks, incl. permanent feedback
  • Reaggregation and re-submission of data
  • Decide what data you want to share
  • Submit and re-submit data via API at your fingertips
  • Automate data exchange through interfaces
  • Get monthly reports and overviews
  • Automate collection of BDN and edi files
  • Stream loading computer information
  • Create holistic picture of onboard situation and performance options 

7. Collaboration with other stakeholders in emission compliance

Collaboration Of Inhouse Teams via Bluetracker and MACS3 Connected

Share information about:

·     Details of actual cargo situation in certain performance conditions

·     Cargo conditions onboard (EDI) overviews on vessel, cargo and ports

·     Fuel consumption and operational vessel data

·     Resulting emission factors and operational vessel performance

Collaboration with External Stakeholders

Share information about:

·     Actual loading condition at times of hitting emission margins.

·     Actual onboard condition in case of claims or discrepancies.

·     Overviews on cargo and vessel performance of vessel over the year.

The integrated Navis solution helps to understand cargo conditions that influence vessel performance and to take informed action. You will be able to analyze fleet-wide operational and cargo data to make smart business decisions and to increase value-added operations. You will reduce emissions and contribute to the transformation of the maritime industry for a greener future. And, most uniquely, you will be able to use cargo-related data from a single source of truth to meet reduction factors in emission calculation and gain a full view on all factors influencing your fleet-wide emission compliance.

 

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